REG - Leeds Group PLC - Further re Disposal, Loan Agreements and RPTs

LeedsAnnouncement

25/03/2024 07:00

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RNS Number : 0607I  Leeds Group PLC  25 March 2024

25 March 2024

 

Leeds Group plc

("Leeds" or the "Company")

 

Further re Disposal, Loan Agreements and Related Party Transactions

The Board of Leeds Group plc ('Board') announces that, further to the
announcement on 29 February 2024, the Proposed Sale of Hemmers is expected to
complete on 26 March 2024. The Company also announces that it has entered into
loan agreements for, in aggregate, EUR 2.0 million (together the "Loan
Agreements" or "Transactions") with Bronsstadet AB, a company controlled by
Peter Gyllenhammar, a substantial shareholder of the Company, and CA
Fastigheter AB, a company controlled by Johan Claesson, a Non-executive
Director of the Company (together the "Lenders").

Loan Agreements

Pursuant to the Loan Agreements, the Company has received EUR 1.0 million
(together the "Funding Loans") from each of the Lenders which will be utilised
as bridge loan financing to pay in full a loan guarantee to KSK Bank of EUR
1.1 million in relation to the KMR insolvency and withholding tax of EUR 0.8
million. The Funding Loans are unsecured and each bear an interest rate of 8
per cent. per annum with a one-off EUR 10,000 handling fee. The Funding Loans
are expected to be repaid from bank loans of EUR 2 million anticipated to be
received by the Company's subsidiary LG Nordhorn Property GmbH once the
Proposed Sale of Hemmers is completed, recovery of EUR 0.6 million of
withholding tax from the German tax authorities and a distribution of
approximately EUR 0.9 million by the KMR insolvency administrator. The
Recovery of the withholding tax and distribution from the KMR Insolvency
administrator are expected within 3-6 months of the transaction completion.

Related Party Transactions

The Loan Agreements constitute related party transactions for the purposes of
Rule 13 of the AIM Rules by virtue of Johan Claesson being a substantial
shareholder and director of the Company and controller of CA Fastigheter AB,
and Peter Gyllenhammar being a substantial shareholder of the Company and
controller of Bronsstadet AB, therefore CA Fastigheter AB and Bronsstadet AB
are considered related parties. Jan Holmstrom and David Cooper, being
directors of the Company independent of the Transactions, having consulted
with the Company's nominated adviser, Cairn Financial Advisers LLP, consider
that the terms of the Transactions are fair and reasonable in so far as the
Company's shareholders are concerned.

Capitalised terms used in this Announcement shall, unless otherwise defined,
have the same meaning as set out in the announcement on 15 December 2023.

 

This announcement contains inside information for the purposes of UK Market
Abuse Regulation and has been arranged for release by Jan G Holmstrom,
Chairman.

 

Enquiries:

 

 Leeds Group plc                                Tel:  01937 547877

 Dawn Henderson
 Cairn Financial Advisers LLP                   Tel:  020 7213 0880

 Nominated Adviser

 Sandy Jamieson / Liam Murray / James Western

 

Cautionary statement

Certain statements made in this announcement are forward-looking statements.
Such statements are based on current expectations and assumptions and are
subject to a number of risks and uncertainties that could cause actual events
or results to differ materially from any expected future events or results
expressed or implied in these forward-looking statements. Persons receiving
this announcement should not place undue reliance on forward-looking
statements. Unless otherwise required by applicable law, regulation or
accounting standard, the Company does not undertake to update or revise any
forward-looking statements, whether as a result of new information, future
developments or otherwise.

 

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